KANSAS CITY, Mo.-Sprint PCS has closed two vendor credit agreements and a bank credit agreement to be used for Sprint’s nationwide personal communications services network.
The vendor credit agreements-a $1.8 billion senior secured credit agreement with Lucent Technologies Inc. and a $1.3 billion senior secured credit agreement with Northern Telecom Inc.-will be used to obtain equipment and services from the two companies. The bank credit agreement, underwritten by The Chase Manhattan Bank, is for capital expenditures and operating expenses.
“We appreciate the vote of support the two vendors have given us with their agreement to finance the buildout of our nationwide PCS network,” said Andy Sukawaty, chief executive officer of Sprint PCS. “Their willingness to provide Sprint PCS with competitive procurement contracts as well as financing demonstrates their commitment to Sprint PCS and their belief in our company.”
Sprint PCS is a partnership of Sprint Corp., Tele-Communications Inc., Cox Communications and Comcast Corp. The company said it plans to launch service in 15 to 20 markets by the end of this year. It has licenses to provide PCS service in 33 major trading areas, covering a population of 190 million people.
